Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
© Jim Mellen,2013
© Jim Mellen,2013The chart below shows the median price of detached single familyhomes sold in greater Williamsburg from J...
© Jim Mellen,2013This chart represent the unit sales for the same criteria from January2005 through April 2013. The peak o...
© Jim Mellen,2013The median sold price of detached single family homes in greaterWilliamsburg in January 2005 was $354,620...
© Jim Mellen,2013This chart represents the sold price for the same criteria fromJanuary 2008 through December 2010. We saw...
© Jim Mellen,2013This chart represents the median selling price of detached single familyhomes from January 2011 through A...
© Jim Mellen,2013Fantasticimprovements inApril YOY activitywithunits,volume,prices…driven bylow inventorylevelsAll William...
*PRACTICLY NOTHING! A buyer will pay what they feel thehome is worth to them and a seller will sell only for what they fee...
Thank you for sitting through my little history lesson andexplanation of where Williamsburg Virginia real estate istoday. ...
Jim Mellen, RE/MAX Peninsula at New Town5400 Discovery Park BlvdWilliamsburg, VA 23188877-394-3636 X409757-806-6021Jim@Jim...
A real estate market history lesson
Upcoming SlideShare
Loading in …5
×

A real estate market history lesson

247 views

Published on

I've done the blog thing but thought I'd give this recent update a little more pop with Slideshare

Published in: Real Estate
  • It's actually more interesting with my voice over and a little animation I have on the Power Point version!
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

A real estate market history lesson

  1. 1. © Jim Mellen,2013
  2. 2. © Jim Mellen,2013The chart below shows the median price of detached single familyhomes sold in greater Williamsburg from January 2005 throughDecember 2007….a.k.a. “the bubble” at least in Williamsburg VAOther than typical seasonal fluctuation we really didn’t seea major run up in prices from 2005-2006 but they held up forlonger periods in usually slower fall/winter months.Source:WMLS REstats May 20132005 2006 2007
  3. 3. © Jim Mellen,2013This chart represent the unit sales for the same criteria from January2005 through April 2013. The peak of “unit sales occurred in June 2005with 158 homes sold in greater Williamsburg. This is when competitionamong buyers peaked and contracts with escalation clauses and limitedcontingency were common. You can see the seasonal activity here witheach spike in units occurring between April and July each year.We started to see the unitsincrease and the peaks andvalleys were trending upstarting in 2010Source:WMLS REstats May 2013
  4. 4. © Jim Mellen,2013The median sold price of detached single family homes in greaterWilliamsburg in January 2005 was $354,620. The “bubble” mighthave happened in June 2005 when unit sales,volume,days on themarket and selling price to listing price ratios all peakedsimultaneously. After June 2005 we were already correcting……June 2005 med. Sold price $396,900Source:WMLS REstats May 2013These closed sales werelikely under contract priorto the stock market crash inOctober 2007June 2006June 20072005 2006 2007
  5. 5. © Jim Mellen,2013This chart represents the sold price for the same criteria fromJanuary 2008 through December 2010. We saw a lot of stimulus,rapidly changing credit markets, national economic uncertainty andunemployment. Again, unusual activity was occurring in late falland winter months-possibly the result of government stimulus.…but for the most part prices wererelatively stable, but unit count wasdeclining…Source:WMLS REstats May 20132008 2009 2010
  6. 6. © Jim Mellen,2013This chart represents the median selling price of detached single familyhomes from January 2011 through April 2013. Clearly the trend showssteady strengthening in prices.Source:WMLS REstats May 20132011 2012 2013
  7. 7. © Jim Mellen,2013Fantasticimprovements inApril YOY activitywithunits,volume,prices…driven bylow inventorylevelsAll Williamsburg MLS residential properties“Greater” Williamsburg,detached SF homesSource:WMLS REstats May 2013
  8. 8. *PRACTICLY NOTHING! A buyer will pay what they feel thehome is worth to them and a seller will sell only for what they feel thehome is worth. Does it follow logic or emotion? Is it based on statisticsand data? Is it an economically driven situation? Emotion seems to bethe dominant reason a buyer buys or seller sells. Logic is lost oneveryone. Economics are always a factor.A successful transaction happens when the seller and buyer “agree todisagree”. Rarely do both feel they got the best of the other. Everyonehas to give a little and get a little-not everything they want, but most ofwhat they want.What is indisputable is that we are clearly in an improving situation forsellers with reduced inventories, historically low interest rates,moderate inflation, improving economic certainty. We continue to seethe highest affordability of homes in history when looking at theeconomics of affordability-the monthly cost vs. monthly incomes
  9. 9. Thank you for sitting through my little history lesson andexplanation of where Williamsburg Virginia real estate istoday. As of April 2013 I am optimistic we are on track tosee a balanced real estate market locally this year.Hopefully one that will last for several years, withmoderate price increases along the way.Hopefully we’ll see fewer foreclosures and more peoplerestore the equity lost in recent years. Every 5% increase inprices means almost 2 million people move from “underwater to above water”. People buying their first or secondhome today are better prepared financially. I believe thatwill continue.Home builders are getting back to building. Where resaleinventory dwindles, I believe we will see new homesreplace the lost inventory again.Tax incentives are important to home ownership and theoverall economy. We need to protect those incentives untilALL tax incentives and loopholes disappear.© Jim Mellen,2013
  10. 10. Jim Mellen, RE/MAX Peninsula at New Town5400 Discovery Park BlvdWilliamsburg, VA 23188877-394-3636 X409757-806-6021Jim@JimMellen.com@BuyWilliamsburgBlog address :http://JimMellen.meEach RE/MAX office is independently owned and operated. The precedingcommentary and analysis are the sole views of Jim Mellen, unless I’ve convinced youI’m right, then we both can own them!

×